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30.06.04, 06:29
Microsoft Makes Proposed Mass. Suit Settlement
By Mark Jewell, AP Business Writer
June 29, 2004
BOSTON (AP)—Massachusetts consumers could receive as much as $34 million
worth of computer products under a proposed settlement of a class-action
lawsuit accusing Microsoft Corp. of violating the state's antitrust laws.
Under a settlement announced Tuesday by Microsoft and the law firms that
filed the complaint, Massachusetts would become the 12th state with which the
Redmond, Wash.-based software giant has reached such an agreement.
The Massachusetts settlement, filed in Middlesex Superior Court, won
preliminary approval from Superior Court Judge Judith Fabricant on Monday—the
same day a judge in Arizona approved a similar settlement there that has a
maximum value of $104.6 million.
The smaller value of Massachusetts' $34 million settlement reflects the fact
that the state's consumer laws differ from those in Arizona and some other
states, said Ann D. White, a lead co-counsel in the case from the firm Mager
White & Goldstein.
Massachusetts' laws limit relief in such cases to individuals, with
businesses and government excluded, White said.
"We're pleased with the dollar amount, when you consider the significant
percentage of computer products purchases by business and government compared
with the number of purchases by individuals," she said.
The agreement will require Microsoft to provide vouchers to all class members
in Massachusetts who bought Microsoft operating systems or software from Jan.
3, 1996 to Dec. 31, 2002.
Qualifying Massachusetts consumers will receive vouchers used to buy any
manufacturer's desktop, laptop and tablet computers; any software available
for sale to the public and used with those products; and specified
accessories for use with computers.
The total amount of vouchers issued will depend on the number of class
members claiming vouchers. The maximum that can be claimed is $34 million.
Under the settlement, Microsoft will give half the value of any unclaimed
vouchers to Massachusetts' public schools. Those vouchers may be used to buy
hardware, Microsoft software and non-Microsoft software, and professional
development services.
The vouchers will go to those districts in which 50 percent or more of the
students are eligible for free or reduced-price lunches.
With this week's settlements in Arizona and Massachusetts, Microsoft has
reached agreements resolving antitrust cases in a total of 12 states and the
District of Columbia, Microsoft spokeswoman Stacey Drake said.
Earlier this month, a judge in Tennessee approved a $64 million state
settlement. In April, the company settled a class-action case in Minnesota,
interrupting a jury trial.
More than 100 cases filed in recent years have been consolidated to more than
30, with Microsoft prevailing in 18 of the cases and five still pending and
without settlement in Iowa, Nebraska, New Mexico, New York and Wisconsin,
Drake said.
The complaints are separate from a case brought against Microsoft by
Massachusetts Attorney General Thomas Reilly and 18 other states, and settled
in 2002.
Massachusetts did not accept the settlement and instead appealed, arguing
that it was so profoundly flawed that it represented an abuse of the judge's
discretion.
www.eweek.com/article2/0,1759,1618502,00.asp
